Greek Bank Deposits Have Biggest One Month Outflow Ever In May

It's official: all those rumors of unprecedented deposit withdrawals in May as Greece was heading into one then another parliamentary election were true. According to just released NBG data, May deposit outflows were €8.5 billion, or the highest on record, bringing the local banks' total private sector deposit base to just €157 billion, the lowest since January 2006, and represents a massive 5% outflow of the entire deposit base as of the end of April. And keep in mind rumors of epic bank jogs and trots did not really pick up until weeks into the second Greek election two weeks ago. At this rate of outflows the entire Greek banking system will have zero deposit cash left in under two years. So aside from the 'details', Europe is all fixed and stuff.

At first glance, it looked as though Chancellor Angela Merkel gave up several core demands during the EU summit. But did she? A closer look reveals a clever retreat to secure greater gains. To find the summit's true loser, one must look no further than Paris.(spiegel)

We have all the facts. But the deranged bearded one behind the curtain does not want to hear it. I think most will agree it will hold together with toothpicks, cheap glue and bare string until November. And to fight this insanity even though you know the truth, and short this market is nuts. The only scenario worse is to use leverage, either short or long. But most of them are already gone.

If this doesn't look like a "run on a country" and not just the banks then I don't know what does. Now will someone answer me this. HOW DO I DISCOUNT FOR THAT? Gold absolutely makes senses as the ULTIMATE truth barometer because the "growth" I am allegedly going to have would have to make the Roaring Twenties look like snail paced growth. Am I suppose to be a currency expert in order to even buy in Europe? If the alternative is 500,000 barrels of oil coming of North Dakota I think the choice..."chooses itself."

Italy up 6.4 points. I'm laughing at all you bears. You guys are probably grumpy bears who lost out on all the bullish movements. Suck it up. Waiting for a market crash is like waiting for a meteorite to hit the earth and end all the suffering. It won't happen.

Just think of the fun and games we will have when enough of the whole fucking world(western mind), find out what has been screwed from us. You're gonna have fucking nut jobs knocking these fuckers off left right and centre.You will walk down the street and see bodies hanging from lamposts, while kicking heads no longer joined to their bodies into the gutter.

Just imagine a life without chosen money masters? It must be fucking bliss.

Tyler has been posting these histograms for a few months now, and this time he talks of the "massive 5% outflow" during the month of May.

I continue to be surprised by how little money the Greeks are removing from their accounts.

Consider: on May 6 they had the first of their two recent elections, with an inconclusive result. No proper gummint for most of May. There was news of food lines, of hospitals running out of drugs, of the government looting university bank accounts in order to pay bills, of the tourist trade doing badly, of one town turning to barter, of rocketing unemployment, and so on. That was the background.

And yet amidst all this, the average Greek decided during May that, for every 100 euro he had in the bank, he really ought to trim it to 95? That "massive 5% outflow" seems tiny to me, given the circumstances.

Ever hear of the law of inertia: objects in motion (or bank deposits or equity positions) tend to stay in motion (not withdrawn or closed) unless acted on by outside forces (capital controls). Inertia and inaction (deer in the headlight syndrome) are very powerful in humans. Its flee or freeze and too often the sheepie freeze. Still, in fractional reserve system, you only need 5-10% of all deposits to be demanded to result in insolveny. How many closed out their Washington Mutual accounts (I did) months before its insolvency-answer very few? Ain't leverage great!

Once people realize the game is definitely going down, the currency will positively FLY out the doors... until the government closes them. That's called "hyperbolic", then "flatline" AKA "you lose, customers".